A report from RBC shows that the average household’s level of debt grew to a new record high.
The bank’s economist Laura Cooper estimates that Canadians now have $1.84 trillion in debt, including mortgages; up 4.9% from the first half of 2014. Home loans increased 3.2%.
While interest rates are low and there have been some income gains, Cooper’s report warns that this will not continue forever and notes that 40% of outstanding debt is held by just 12% of households.
These could become a problem as mortgage rates rise.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Truro Heights, Belgrave, Port George, Brossard, Granville Ferry
While official figures show a technical recession for the first half of 2015, it seems Canadians were not put off from borrowing.